Everything Else Equal, Significant Trade Deficits, Imports Exceeding Exports, Should

question 23

Multiple Choice

Everything else equal, significant trade deficits, imports exceeding exports, should have what effect on a country's exchange rate?

• A) Trade levels do not affect exchange rates.
• B) The country's currency should appreciate in value relative to their major trading countries.
• C) The country's currency should depreciate in value relative to their major trading countries.
• D) None of the above is correct.

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Definitions:

Judicial Review

The doctrine under which legislative and executive actions are subject to review by the judiciary to ensure they comply with the constitution.

Administrative Tribunal

A governmental body with quasi-judicial powers, tasked with resolving disputes, adjudicating on rights, and administering justice in administrative matters.

Ultra Vires

Acts or decisions made by an entity that are beyond the scope of its powers as defined by its legal or constitutional documentation.

Constitution Act

A foundational legal document or statute that outlines the principles and framework of a governmental system.